Confronting Objections to Performance Pay: A Study of the Impact of Individual and Gain-sharing Incentives on the Job Satisfaction of British Employees

Konstantinos Pouliakas and Ioannis Theodossiou

MPRA Paper from University Library of Munich, Germany

Abstract: The increasing use of incentive pay schemes in recent years has raised concerns about their potential detrimental effect on intrinsic job satisfaction (JS), job security and employee morale. This study explores the impact of pay incentives on the overall job satisfaction of workers in the UK and their satisfaction with various facets of jobs. Using data from eight waves (1998-2005) of the British Household Panel Survey (BHPS) and a uniquely-designed well-being dataset (EPICURUS), a significant positive impact on job satisfaction is only found for those receiving fixed-period bonuses. These conclusions are robust to unobserved heterogeneity, and are shown to depend on a number of job-quality characteristics that have not been controlled for in previous studies.

Keywords: performance-related-pay; job satisfaction; job security; intrinsic satisfaction; sorting (search for similar items in EconPapers)
JEL-codes: J28 J33 (search for similar items in EconPapers)
Date: 2009-03-03
New Economics Papers: this item is included in nep-bec, nep-cta, nep-hap and nep-lab
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (20)

Downloads: (external link)
https://mpra.ub.uni-muenchen.de/14244/1/MPRA_paper_14244.pdf original version (application/pdf)
https://mpra.ub.uni-muenchen.de/19304/1/MPRA_paper_19304.pdf revised version (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:14244

Access Statistics for this paper

More papers in MPRA Paper from University Library of Munich, Germany Ludwigstraße 33, D-80539 Munich, Germany. Contact information at EDIRC.
Bibliographic data for series maintained by Joachim Winter ().